PhonePe has secured in-principle approval (IPA) from the Central Bank of the UAE (CBUAE) for two licences, marking the Indian digital payments platform’s first international market entry.
The approvals cover Retail Payment Services and Card Schemes (RPSCS) and Stored Value Facilities (SVF). The IPA follows the successful completion of the initial regulatory due diligence and allows PhonePe to work towards obtaining final approval to commence operations in the UAE.
UAE expansion
PhonePe said its proposed entry into the UAE is aligned with the country’s Financial Infrastructure Transformation (FIT) programme and its expanding digital economy.
Subject to final regulatory approval, the company plans to build a deeply integrated local payments ecosystem by working with regional banks, licensed payment service providers and technology vendors.
The company also plans to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, using its full-stack technology platform.
Building on India scale
PhonePe said its technology architecture has been designed to handle high transaction volumes, with the platform currently serving more than 700 million registered users and 50 million merchants in India.
As of August 2026, PhonePe had more than 72 crore registered users and a digital payments acceptance network covering over 5 crore merchants.
The company said its proposed UAE deployment would complement the country’s existing financial infrastructure and support digital commerce for residents and businesses.
Cross-border payments
PhonePe already has a presence in the UAE through its partnership with NPCI International Payments Limited (NIPL).
Under existing cross-border arrangements, Indian travellers in the UAE can use PhonePe to scan local QR codes and make payments across NEOPAY and Network International terminals.
The proposed UAE operations would build on this existing cross-border payment connectivity.
Focus on UAE-India corridor
PhonePe CEO and Executive Director International Payments, Ritesh Pai, said the company aims to become a long-term partner in the UAE’s evolving digital payments ecosystem.
“By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets,” Pai said.
PhonePe said it will continue working with UAE authorities to complete the requirements for final regulatory approval before launching commercial operations in the country.